Does Wall Street Rate Fortinet Inc. (FTNT) Shares A Sell?


As of Thursday close, Fortinet Inc.’s (NASDAQ:FTNT) stock was up $0.58, moving up 0.87 percent to $67.17. The average number of shares traded per day over the past five days has been 6,460,020 shares. 2 times new highs have been achieved over the past 5 days, with a -$0.97 fall in that time frame. In the last twenty days, the average volume was 5,390,505, while in the previous 50 days, it was 4,571,862.

Since last month, FTNT stock rose 5.95%. Shares of the company fell to $60.33 on 05/03/23, the lowest level in the past month. A 52-week high of $71.29 was reached on 05/22/23 after having rallying from a 52-week low of $42.61. Since the beginning of this year, FTNT’s stock price has risen by 37.39% or $18.28, and marked a new high 23 times. However, the stock has declined by -5.78% since its 52-week high.

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FTNT stock investors should be aware that Fortinet Inc. (FTNT) stock had its last reported insider trading activity 3 days ago on May 23. Jensen Keith, the CFO & Chief Accounting Officer of the company, disposed of 24,710 shares for $68.18 on May 23. It resulted in a $1,684,842 divestment by the insider. Perche Patrice sold 7,535 shares at an average price of $70.24 on May 22. The insider now owns 25,730 shares following the transaction. On May 18, CFO & Chief Accounting Officer Jensen Keith sold 5,050 shares at $68.23 apiece. The transaction was valued at $344,568.

Valuation Metrics

Right now, Fortinet Inc. (FTNT) has a P/E ratio of about 55.38. The stock’s beta is 1.14. Besides these, the trailing price-to-sales (P/S) ratio of 10.92, the price-to-book (PB) ratio of 6717.00, and the price-to-cash flow ratio of 28.31 may also be considered.

Financial Health

In the three months ended March 30, Fortinet Inc.’s quick ratio stood at 1.20, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 86.92. On the profitability front, the trailing twelve-month gross margin is 75.90% percent. In the year ended March 30, EBITDA margin amounted to 24.21%, whereas operating margins totaled 23.10%. Based on annual data, FTNT earned $3.33 billion in gross profit and brought in $4.42 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 132.40%. Return on equity (ROE) for the past 12 months was -297.90%.

In Fortinet Inc.’s quarter-end financial report for March 30, it reported total debt of $990.9 million against cash and short-term investments of $548.8 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. FTNT’s revenue rose 24.36% to $1.28 billion during the quarter, while net income inched up to $1.26 billion. While analysts expected Fortinet Inc. to report $0.29 quarterly earnings, the actual figure was $0.34 per share, beating the consensus estimate by 17.20%. During the quarter, the company generated $363.2 million in EBITDA. The liabilities of Fortinet Inc. were 6.82 billion at the end of its most recent quarter ended March 30, and its total debt was $990.9 million. The value of shareholders’ equity is $785.2 million.

Technical Picture

This quick technical analysis looks at Fortinet Inc.’s (FTNT) price momentum. With a historical volatility rate of 21.37%, the RSI 9-day stood at 50.30% on 25 May.

With respect to its five-day moving average, the current Fortinet Inc. price is down by -1.42% percent or -$0.97. At present, FTNT shares trade +6.52% above its 20-day simple moving average and +37.39% percent above its 100-day simple moving average. However, the stock is currently trading approximately +11.23% above its SMA50 and +28.70% above its SMA200.

Stochastic coefficient K was 55.60% and Stochastic coefficient D was 70.20%, while ATR was 1.93. Given the Stochastic reading of 39.68% for the 14-day period, the RSI (14) reading has been calculated as 53.33%. As of today, the MACD Oscillator reading stands at -0.99, while the 14-day reading stands at -0.52.

Analyst Ratings

Fortinet Inc. (FTNT) has been rated Overweight by analysts. According to 0 brokerage firms, FTNT is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate Fortinet Inc. stock as buy, with 20 recommending it as overweight.

With a median target price of $75.00, the current consensus forecast for the stock is $64.00 – $90.00. Based on these forecasts, analysts predict Fortinet Inc. (FTNT) will achieve an average price target of $75.10.


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